A COMPANY behind the nationwide holiday scam which prompted a wave of concern in Widnes and Runcorn and warnings from Halton's consumer protection officers has been wound up by the High Court.

Investigations revealed less than 30 people out of thousands across the UK received 'prizes' they should have been entitled to.

Earlier this year, the Weekly News was inundated by calls from worried residents who could not understand why they had received letters offering 'free' holidays for a £30 'processing' fee.

The letters told residents they had won first prize in a competition - despite them never having entered a competition.

Now the High Court has liquidated the companies behind the scheme - Incentive Marketing and Direct Travel Ltd ­- following a DTI probe which found that a staggering 65,000 people had parted with their hard earned cash in the hope of claiming prize holidays in Spain, Portugal and the Canary Islands.

An estimated £3.45m had been sent to the company but only £1.79m could be accounted for.

In July, the council urged people to think twice before handing over their cash and, more importantly, warned of the dangers of signing contracts they were not 100% sure about.

Consumers were also advised to expect long waits of up to 18 months before receiving any holiday prize ­ but out of the 55,000 letters distributed across the UK just 25 people received the prizes that they were entitled to.

Halton Borough Council consumer officers also thought it suspicious that the company had charged a 'processing' fee rather than a deposit, meaning that if no holiday was forthcoming, the company could not be held in breach of contract and no cash could claimed back.

Nicholas Caddick, counsel for the DTI, said: 'This was obviously a highly profitable venture for those involved in the company but a very unsatisfactory one for the public.'

Holidays Direct, which had traded from addresses in Longnor, Derbyshire, and Bournemouth, Dorset, sent prize letters and brochures to the public announcing that recipients had won top prize in a competition guaranteeing them free flights and holiday accommodation for two in luxury apartments.

The unsolicited letters included a certificate entitling the recipient to a holiday within 18 months providing certificates were returned within seven days and accompanied by the administration fee.

The organisations behind the scheme were wound up in the public interest on the basis that:

* The holiday promotion scheme was unsatisfactory - members of the public had been persuaded to hand over cash on the promise of free holidays that very few were likely to receive.

* The companies attracted a response and payments from members of the public on the basis of untrue or misleading documents containing untrue or misleading promises or assurances.

Speaking in the wake of the decision, MP Melanie Johnson, minister for competition, consumers and markets, gave a stern warning to other companies running similar ventures, that they would be brought to book.

She said: 'Today's judgement will be some comfort to the many people who have lost money to know that this firm has been put out of business once and for all.

'This case has certainly attracted a great deal of attention and many people have been involved. I am glad that no one else will loose out from now on.

'The minority of businesses who think they can get away with deliberately cheating the public should take note ­ we are not prepared to let you get away with it and we will do everything we can to stop you.'

* Anyone who receives similar correspondence can contact Halton Borough Council's consumer protection division for advice on 0151 471 7515 or email consumer.protection@halton-borough.gov.uk